Refund claim under exemption notification accepted where contemporaneous letter and pending approval supported timely adjustment of excess duty.

Exemption under Notification No. 198/76 depended on approval of a declaration fixing base clearance before concessional duty could operate. A contemporaneous letter asking the department to confirm the claim and adjust excess duty already paid in the RT-12 return was treated as a valid refund claim, even though the prescribed refund form was not used, because no mandatory rule made that form essential. The later fresh declaration and its approval supported the position that the claim remained pending until approval, so limitation could not be computed rigidly only from the dates of duty payment. The refund claim was therefore held to be within time and the limitation objection was rejected.

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Issues: Whether the refund claim was barred by limitation and whether the assessee's letter dated 4-10-1977 could be treated as a valid refund claim under the exemption scheme.

Analysis: The assessee was entitled to the benefit of Notification No. 198/76, which contemplated fixation and approval of base clearance before exemption could operate. The letter of 4-10-1977 specifically informed the department that concessional duty was being claimed from the date the base clearance was crossed and requested confirmation so that excess duty already paid could be adjusted in the RT-12 return. The absence of the prescribed refund form was not treated as fatal, as no mandatory rule required use of that form. The subsequent fresh declaration and its approval on 12-4-1978 supported the assessee's case that the refund claim was pressed and remained pending until approval of the declaration, so the claim could not be rejected as time-barred merely by reckoning limitation from the dates of duty payment.

Conclusion: The refund claim was held to be in time and the objection based on limitation was rejected in favour of the assessee.

Ratio Decidendi: Where exemption under a notification depends on approval of a declaration fixing base clearance, a contemporaneous letter seeking adjustment of excess duty can constitute a valid refund claim, and limitation for such claim is not confined rigidly to the date of duty payment alone.

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